Borrowings and Other Debt Obligations

3 Months Ended

Mar. 31, 2025

7 – Borrowings and Other Debt Obligations


(Dollars in millions)	March 31, 2025		December 31, 2024
Current Portion of Finance Leases	$	22	$	17
Current Portion of Long-term Debt	$	22	$	17

8.625% Senior Notes due 2030 “2030 Senior Notes”	$	1,552	$	1,586
Finance Leases	31		31
Long-term Debt	$	1,583	$	1,617

2028 Senior Secured Notes

On September 30, 2021, Weatherford International Ltd. (“Weatherford Bermuda”) issued 6.50% senior secured notes in aggregate principal amount of $500 million maturing September 15, 2028. Interest was payable semiannually on September 15 and March 15 of each year, and commenced on March 15, 2022. Proceeds from the issuance were reduced by debt issuance costs. During the three months ended March 31, 2024 we redeemed $167 million of the then outstanding $248 million of principal. During the three months ended June 30, 2024 we fully redeemed the remaining principal amount.

2030 Senior Notes

On October 27, 2021, Weatherford Bermuda issued 8.625% senior notes in aggregate principal amount of $1.6 billion maturing April 30, 2030 (the “2030 Senior Notes”). Interest is payable semiannually on June 1 and December 1 of each year, and commenced on June 1, 2022. On December 1, 2022, the indenture related to our 2030 Senior Notes was amended and supplemented to add Weatherford International, LLC (“Weatherford Delaware”) as co-issuer and co-obligor, and concurrently release the guarantee of Weatherford Delaware. In the first quarter of 2025, we repurchased $34 million in principal of our 2030 Senior Notes. At March 31, 2025, the carrying value represents the remaining unpaid principal of $1.56 billion, offset by unamortized deferred issuance cost of $11 million. At December 31, 2024, the carrying value represented the remaining principal of $1.6 billion, offset by unamortized deferred issuance cost of $11 million.

Credit Agreement

Weatherford Bermuda, Weatherford Delaware, Weatherford Canada Ltd. (“Weatherford Canada”) and WOFS International Finance GmbH (“Weatherford Switzerland”), together as borrowers, and the Company as parent, have an amended and restated credit agreement (the “Credit Agreement”). The Credit Agreement is guaranteed by the Company and certain of our subsidiaries and secured by substantially all of the personal property of the Company and those subsidiaries. At March 31, 2025 and December 31, 2024, the Credit Agreement allowed for a total commitment amount of $720 million, maturing on October 24, 2028. Financial covenants in the Credit Agreement include a $250 million minimum liquidity covenant (which may increase up to $400 million dependent on the nature of transactions we may decide to enter into), a minimum interest coverage ratio of 2.50 to 1.00, a maximum total net leverage ratio of 3.50 to 1.00, and a maximum secured net leverage ratio of 1.50 to 1.00.

As of March 31, 2025, we had zero borrowings outstanding under the Credit Agreement and $397 million of letters of credit outstanding. The letters of credit consisted of $277 million for performance letters of credit, $6 million for financial letters of credit under the Credit Agreement and $114 million letters of credit under various uncommitted bi-lateral facilities ($48 million of which was cash collateral held and recorded in “Restricted Cash” on the Condensed Consolidated Balance Sheets).

As of December 31, 2024, we had zero borrowings outstanding under the Credit Agreement and $382 million of letters of credit outstanding. The letters of credit consisted of $279 million for performance letters of credit, $12 million for financial letters of credit under the Credit Agreement and $91 million letters of credit under various uncommitted bi-lateral facilities ($49 million of which was cash collateral held and recorded in “Restricted Cash” on the Condensed Consolidated Balance Sheets).

Fair Value

The fair value of our long-term debt fluctuates with changes in applicable interest rates among other factors. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued and will be less than the carrying value when the market rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. The table below presents the fair value and carrying value of our long-term debt (excluding finance leases).


	March 31, 2025				December 31, 2024
(Dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value

8.625% Senior Notes due 2030	$	1,552	$	1,590	$	1,586	$	1,650
Long-Term Debt (excluding Finance Leases)	$	1,552	$	1,590	$	1,586	$	1,650